Whether I can adjust LTCG Tax towards basic exemption limit?

My Mom is an housewife who has started earning income from this FY of approx Rs 60000/- per annum from private school tuitions. She has registered with Income Tax department and will be filing return. She has earned LTCG this FY by selling off a joint property held along with my dad. My query is,Will the LTCG received be added along with her other income and taxed as per Tax slab,with exemptions upto 2.5 lacs being in the lowest bracket of income or whether the LTCG received taxed seperately @20% (after cost indexation); without taking into consideration of her income tax bracket.

You can adjust such LTCG towards the basic exemption limit of Rs.2,50,000. Any income over and above will be taxed as per the source of income (in your case it is LTCG and you have to pay the tax as per this LTCG special tax rate).